U.S. COTTONS TO BRAZIL DEAL — The United States and Brazil have settled their longstanding dispute over U.S. cotton subsidies … for a cool $300 million. The U.S. payment to the Brazil Cotton Institute ends Brazil’s threat to retaliate against U.S. intellectual property, an official familiar with the deal said.

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U.S. Trade Representative Michael Froman and Agriculture Secretary Tom Vilsack are expected to sign the agreement with their Brazilian counterparts today.

“Everyone is relieved that this case is finally being put behind us and that Brazil and the U.S. can now move on to the many common interests that unite us," the official said. "It also means that we can fully implement the farm bill without concern about retaliation. When you consider what was on the line for both sides, this is a win-win deal.” Pro Trade’s Doug Palmer has more: http://politico.pro/1rsEsvS

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OBAMA, MODI’s FIVEFOLD TRADE GOAL — President Barack Obama and Indian Prime Minister Narendra Modi agreed Tuesday to an ambitious goal: boosting bilateral trade to nearly $500 billion — five times the current figure and 25 times the level in 2001

On the down side, they made no progress on the fractious dispute threatening to finish the WTO as a negotiating body. The bitter disagreement started when when India blocked implementation of the WTO’s Trade Facilitation Agreement, which the global trading group reached last December in Bali, in an attempt by New Delhi to gain leverage in protecting its food subsidy programs.

“The leaders discussed their concerns about the current impasse in the World Trade Organization and its effect on the multilateral trading system, and directed their officials to consult urgently along with other WTO members on the next steps,” Obama and Modi’s joint statement said. Read Palmer’s story: http://politico.pro/1mNGkxR

FROMAN FORGES AHEAD — U.S. Trade Representative Michael Froman plans to meet soon with trade officials from Malaysia, Mexico and Chile to try to close unresolved issues in talks on a massive Asia-Pacific trade deal, POLITICO has learned.

The USTR also plans to send staff to some unspecified Trans-Pacific Partnership countries in Asia over the next few weeks to intensify engagement on problematic issues in the negotiations.

The meetings will precede a gathering of ministers in late October in Australia, which could produce the outlines of a final deal for leaders of the 12 TPP countries to consider while attending the Asia-Pacific Economic Cooperation leaders’ summit in China and G20 summit in Australia, both in mid-November.

But no guarantee for a 2014 conclusion, a senior U.S. trade official said: “I would be reluctant to put any particular deadline on any of this, but we’ve got a very intensive schedule of engagement over the next couple of months, and we’re going to use that to make as much progress towards closure as possible,” the official said. Read the full story: http://politico.pro/1pEPo2N

ROBB: DEAL WITHIN REACH -- The TPP talks could wrap up shortly if countries show the political will to tackle tough market access issues, Australian Trade Minister Andrew Robb said Tuesday.

"This could come together very quickly," Robb said at the annual Global Services Summit in Washington, hosted by the U.S. Coalition of Services Industries.

Fernando de Mateo y Venturini, Mexico's ambassador to the WTO, agreed the negotiations were well advanced. "We could do it this year," he said. More from Doug Palmer: http://politico.pro/1rDCTJ7

U.S. NOT DROPPING ISDS -- The United States won’t give up on including a controversial investor protection clause in a trade deal with the European Union, the U.S. trade official in charge of the transatlantic trade talks said Tuesday at the services summit.

Investor-state dispute settlement (ISDS) “is one of the very important U.S. goals in concluding the [Transatlantic Trade and Investment Partnership],” Deputy U.S. Trade Representative Michael Punke said.

Punke’s comments came a day after EU trade commissioner-designate Cecilia Malmstrom testified during her confirmation hearing in the European Parliament that the mechanism could be nixed from the deal. It’s a “toxic element,” she said.

Balance can be found, Punke says. The U.S. ambassador defended the legal mechanism, which allows corporations to sue governments over regulations that they say damage their business.

“We believe there is an appropriate way of balancing the benefits of providing investor protection while at the same time ensuring that you are maintaining the space that you need to regulate in the interests of all the consumers,” he said.

FROMAN URGED TO PROTECT GMO LABELING -- Supporters of GMO labeling are urging Froman to ensure that the pending trade deal not limit the ability of EU countries and U.S. states to require the labeling of genetically modified food ingredients.

In a letter to Froman on Tuesday, 70 U.S. and European groups and businesses that support mandatory labeling warned that TTIP language on “technical barriers to trade” could result in challenges to the EU’s existing GMO labeling provisions as well as new state-level requirements in the United States.

“European and U.S. agribusiness corporations, in their formal demands issued to [TTIP] negotiators, have been remarkably candid in naming the dismantlement of GMO labeling policies as one of their goals for [the Trans-Atlantic Free Trade Agreement],” the letter said, adding that the TTIP proposal “would provide a new means to thwart the public’s will.” Read the letter: http://bit.ly/1vvk5y9

PRITZKER PRODS TURKEY ON MARKET ACCESS -- U.S. Commerce Secretary Penny Pritzker on Tuesday pressed Turkey to address a couple of trouble spots in the trade relationship: opaque government procurement processes and local production requirements.

"It has now been five years since our leaders announced that we would elevate our commercial relationship,” Pritzker said in a speech in Istanbul. “Frankly, the time is now to hit the accelerator.”

"Clearly, American businesses see great opportunities here, but they still suffer from a lack of access to Turkish markets," she continued. "Too often, U.S. companies come to the Department of Commerce with concerns about a wide variety of barriers to entry."

Foreign companies "historically have endured a series of burdensome and unfair requirements just to be considered in the process" of competing for government procurement projects, Pritzker said. More from Pro’s Palmer: http://politico.pro/1sMravj

Chlorine chicken rears its head again as negotiators meet for the seventh round of TTIP negotiations, Minnesota Public Radio reports: http://bit.ly/1Bz76vf

A Canadian parliamentarian from Saskatchewan is elected head the House of Commons’ International Trade Committee, the Prince Albert Daily Herald reports: http://bit.ly/1nI4Hh4

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About The Author : Adam Behsudi

Adam Behsudi is a trade reporter for POLITICO Pro.

Prior to joining POLITICO, he covered international trade policy for Inside U.S. Trade, where he tracked down the latest news on the Trans-Pacific Partnership from exotic locales such as Auckland, New Zealand; Kota Kinabalu, Malaysia; and Leesburg, Va.

Before writing about anti-dumping, export controls and other trade subjects, Behsudi covered city hall for the Frederick News-Post. He got his start in journalism chasing crooked sheriffs and other crime-related news in the mountains of western North Carolina for the Asheville Citizen-Times

Behsudi earned his bachelor’s degree in 2005 from the University of Missouri. With the hope that journalism could return as a growth industry within his lifetime, he earned a master’s degree in interactive journalism from American University in 2010.